NC H727

Employers may withhold employee wages without written authorization when criminal process has issued, an employee has been indicted, or arrested for charges related to cash shortage, inventory shortage, or property damage.

Wage withholdings under these circumstances must still comply with subsection (b) limits on the portion of wages that can be withheld.

If criminal process or indictment is dismissed or the employee is not found guilty, the employer must reimburse the employee for all amounts withheld.

The act becomes effective upon passage and applies to wages earned on or after the effective date.